Frequently Asked Questions

For a complete list of Acquirer Members that offer the Interac Direct Payment service, please refer to our list of Acquirers.

Most payment terminals can be upgraded to accept IDP by installation of a PIN pad and the addition of some software. For more information contact your Acquirers.

Generally, you'll receive a deposit the next business day for all IDP transactions. However, for specifics you should contact your Acquirers.

Any system inquiries should be directed to the technical support number supplied to you by your Acquirers or Payment Service Provider.

Interac Association and its members work diligently to ensure that procedures are in place to manage any service interruptions quickly and efficiently. The Interac network was designed using a "distributed architecture" approach. While certain members may experience temporary outages, the entire system will not fail.

You will have to ask your customer for another form of payment. Other options can be discuss with your Acquirer or Payment Service Provider.

Customers who are unable to access their account with their debit card should be advised to check with their financial institution.

Your customer should contact his or her own financial institution to address being overcharged.

As with purchases made by any other payment method, refunds and exchanges are a matter of merchant policy. If you wish, refunds can be processed through the Interac Direct Payment service, providing the customer is present to authorize the refund transaction.

The Interac Direct Payment service is a convenient and reliable payment option. It means cardholders have the option of using their debit card to pay for purchases at any participating merchant in Canada displaying the Interac logo. It is available to merchants 24 hours a day, seven days a week, so it can be available to cardholders during merchants' normal business hours. The service has a number of benefits for cardholders since it is convenient, fast, safe and reliable.

The Interac Direct Payment service allows the cardholder to access funds that are already in their account at the time of the purchase. It's like cash, only the funds are exchanged electronically. Merchants are guaranteed funds with every approved transaction.

Yes, it matters. The card must be issued by a member of the Association. Typically, the Interac brand can be seen on the back of the card.

Yes. The Interac Direct Payment service allows the customer to pay for purchases directly at any participating merchant location, regardless of their financial institution.

You are guaranteed payment when the transaction is authorized and approved at the Point-of-Sale. Deposit to your account is generally the next day, however for specifics please contact your service provider for more information about the length of time required to process a transaction.

Each member of Interac Association administers its own Interac Direct Payment network, which is connected to each other through the Inter-Member Network. Interac Association administers the Inter-Member Network, which processes transactions between members.

Yes, glitches may occur from time to time; however, the services provided by Interac Association Members meet the highest standards for reliability, confidentiality and user friendliness. Interac Association and its Members work diligently to ensure that procedures are in place to manage any service issues quickly and efficiently. Canadians' overwhelming usage of Interac services is a testament to their reliability and confidence in the services.

Yes, Interac Direct Payment is available to all merchants across Canada.

Interac Flash is a contactless enhancement of Interac Direct Payment, providing shoppers with a fast and convenient way to pay for everyday purchases, since they don't have to insert their card or enter a PIN.

The cardholder's chip debit card will continue to carry out chip debit transactions, as it does today, but through the use of a dual-interface microchip, the functionality of the debit card has been enhanced to provide cardholders with the ability to carry out contactless transactions that do not require the card to be inserted into the terminal or a PIN to be entered.

The customer simply flashes the debit card in front of the card reader and the purchase will automatically be debited from the customer's account. If the transaction is above the set dollar limit, he/she will be asked to insert the card and enter a PIN to conduct a chip debit transaction.

Interac Flash enabled debit cards will begin to become available in 2011. If you would like more information about Interac Flash, please contact your Acquirer.

Merchants who offer the Interac Direct Payment service have the option of offering a courtesy service to their customers known as "cashback". That is, a service offered to retail customers whereby additional cash is added to the total purchase price to be debited from a customer's account and the customer receives that additional amount in cash, along with their goods. It is entirely up to individual merchants to decide if they wish to offer this option.

Contact your Interac Acquirer or payment service provider for POP signage.

Generally, merchants will have to either lease or purchase equipment and may pay a processing fee for each transaction. These costs and the conditions under which they apply are negotiated between you and your Acquirer or payment service provider. If you are interested, you should contact any Acquirer directly.

A chip debit card contains an embedded computer chip and provides increased protection against debit card skimming and the production of counterfeit debit cards. In addition, the chip debit card also offers a platform for future opportunities, innovations and new product and service offerings, allowing you to keep pace with the global advancements in card payment technology.

Chip technology is based on a global standard known as EMV, a proven technology currently in wide use around the world.

EMV is the standard for interoperation used for authenticating credit and debit card payments at chip enabled terminals. The EMV specifications were collectively developed for payment systems by Europay, MasterCard and Visa, in order to ensure that chip cards function with chip terminals.

Our compliance with EMV standards ensures you're able to accept and process chip cards issued by different payment associations around the globe.

The movement to chip card technology is part of Interac Association's long-term commitment to providing secure and innovative services. Chip technology is a new generation of payment card technology that will make it virtually impossible for fraudsters to duplicate cards and card information — promoting consumer confidence in the payment system.

Interac Association is taking a leadership position by proactively migrating to chip technology to protect the Canadian payments system against fraudsters who are leaving countries that are chip-based in search of those that have not yet transitioned.

The chip is like a mini computer, which gives the card the ability to store and process data securely. Unlike a magnetic stripe, this processing power makes it virtually impossible to copy and reproduce debit cards and card information. Secondly, this processing power is used, together with cryptography (a series of mathematical algorithms), to allow the card and terminal to communicate with one another and carry out security checks to ensure the card is valid.

Chip technology is based on a global standard known as EMV, a proven technology currently in wide use around the world.

Magnetic stripe technology continues to be a safe form of electronic payment; in fact 99.99 per cent of all transactions are processed over the Interac network without incident.

The migration to chip card technology represents an evolution of the electronic payments system designed to make an already safe payments system even more secure.

Chip card technology will prevent skimming of card data and the creation of counterfeit cards.

We are confident that chip cards and terminals will have a positive impact on your business. The key benefits include:

Security: Chip technology is more difficult to duplicate, enhancing consumer confidence in the payment system and decreasing your fraud management costs.

Innovation: Chip technology will provide a platform for new product and service offerings and enable you to keep pace with global advancements in card payment technology.

Successful migration to chip technology is dependent upon the efforts of everyone in the payments industry. The payment brands have upgraded their proprietary networks, and have provided technical specifications, policies, testing, certification services and support in preparation for the transition.

Financial institutions that issue cards have made significant system upgrades and will need to distribute new chip cards. Acquirers have made significant upgrades to back-end systems and will need to replace point-of-sale terminals.

You, too, will play a role in the transition to a more secure payment system. You will need to upgrade your proprietary payment systems to support this technology, and you will need to train cashiers.

Most components in the existing point-of-sale system will need to be upgraded to chip technology. The size of the initiative and costs will vary from one merchant to another, depending on the size of your organization, your payment infrastructure and the proprietary agreements you have with your Acquirer.

The following are key changes to be considered when evaluating costs:

• Obtaining chip-accepting terminal devices
• Updating the software operating the terminals
• Updating the connection to backroom operations

For more information, talk to your Acquirer or payment provider.

Yes, all merchants who offer Interac services will have to upgrade their terminals to chip technology. In order to derive the full benefits from the security of chip technology, the Canadian payments industry must collaboratively transition.

Chip technology is the long-term solution to payment card fraud. Together the industry will benefit from a more secure payments system coupled with enhanced consumer confidence.

Chip cards and chip terminals began rolling out across Canada in 2008. The majority of chip debit cards and terminals are expected to be in the marketplace by 2010.

The complete migration to chip technology will take several years, given the vast number of Automated Banking Machines, point-of-sale terminals and debit cards across Canada that must be converted.

Yes, a one-year market trial was coordinated in Kitchener-Waterloo, Ontario, in 2008. The market trial was conducted in collaboration with credit card companies, financial institutions, payment processors, and a variety of merchants. The trial allowed participants to measure the operational effectiveness and customer/merchant experience in a controlled environment.

The migration of debit cards to chip debit cards will take place over many years, as each financial institution has its own timetable in place to distribute new cards to their customers. By December 31, 2012, all debit cards will be chip enabled.

Complete migration to chip technology will take several years, given the vast number of Automated Banking Machines, point-of-sale terminals and debit cards across Canada. In order to ensure a smooth transition, Interac Association has implemented conversion deadlines.

Magnetic stripe transactions will no longer be accepted at Automated Banking Machines after December 31, 2012 and will no longer be accepted at point-of-sale terminals after December 31, 2015.

Acquirers and payment service providers will work with you to determine plans for migration to chip terminals. All Interac Direct Payment terminals need to process chip debit transactions by December 31, 2015. The transition period allows for terminals to be converted as part of normal attrition and/or replacement cycles. You will need to work out plans for migration to chip terminals with your Acquirer or payment service provider.

If you have not upgraded your terminals by 2015, they will not be able to process debit transactions. We have put the appropriate timelines in place for the migration to occur in normal business cycles, so that you will be able to transition to chip within the set timeline and with minimum impact.

Liability shift is not applicable in the Interac services, since debit transactions are guaranteed. If you do not transition to chip technology by the 2015 deadline, you will not be able to process debit transactions.

Cardholders will experience only a minor change in the way they interact with the point-of-sale terminal. When conducting a chip debit transaction, cardholders will no longer swipe the cards through the machine. Instead, cardholders will insert their debit card chip first into the terminal for the duration of the transaction, and then follow the prompts just as they do today.

Yes. Chip-enabled Automated Banking Machines and point-of-sale terminals will require that cardholders enter their PIN just like they do today. The PIN remains a key security element of the transaction.

No, chip debit card transactions will be just as efficient as magnetic stripe transactions, as customers will follow the same prompts as they do today.

Yes, magnetic stripe debit cards will continue to work in chip capable devices, so cardholders will be able to use their magnetic debit cards throughout the transition; however, after 2015, magnetic stripe cards will no longer work in Canada. The magnetic stripe and the chip will co-exist on the card, even after the transition in Canada, to allow cardholders to use their debit cards in countries that have not yet migrated to chip technology.

Yes, customers visiting Canada from another country will be able to use their debit card at your store.

Chip technology is based on EMV, a global standard that allows cards and terminals to work around the world. Many countries have already migrated to chip technology, so if a customer from outside of Canada presents a chip card, and you have a chip capable terminal, you will be able to conduct a chip transaction.

If a customer from outside of Canada presents a magnetic stripe debit card, you will be able to process the transaction whether you have a chip capable terminal or not, because chip terminals will continue to be able to process magnetic stripe transactions.

Interac Association strongly advises that you educate your sales associates about the new generation of payment cards, and the transaction process so that they will be able to better serve your customers. The knowledge will ensure a smooth process for both staff and customers.

Your Acquirer/payment service provider will be able to answer your questions and provide the tools and materials you need to train your staff.

Interac Association also has a variety of tools to help you train your staff, including DVDs, brochures, step-by-step transaction guidelines, web content and much more.

For more information, please contact chip@Interac.ca.

Chip cards and terminals work together to ensure a highly secure transaction by validating the card and cardholder. Chip technology makes cards more difficult to copy, thereby reducing counterfeit fraud, ultimately making a safe system even more secure.

Magnetic stripe will co-exist with chip to allow consumers to use their cards in countries that have not yet migrated to chip technology.

You will be informed by your Acquirer or payment service provider as to the acceptance capabilities of your terminals.

Chip is advanced technology, which means the card and the terminal are able to communicate and prompt the merchant/customer throughout the process. For example, if the customer has a chip card, and attempts to swipe the card, the device will know the card has a chip and will prompt the customer to insert the card into the device.

Advise your cashiers/sales associates when their terminals are chip ready, so that they are able to inform and assist customers and ensure a smooth process for both the merchant and customer.

Canada's payment industry is making every effort possible to ensure a seamless transition to chip for consumers and merchants. To further support the migration to chip technology, the industry has developed an image that can be used at chip-enabled devices, at the merchant's discretion, to indicate that chip is accepted at your device.

You should contact your Acquirer/payment services provider for more information about the chip acceptance image and Usage Guidelines.

EMV is the standard for interoperation used for authenticating credit and debit card payments at chip enabled terminals. The EMV specifications were collectively developed by Europay, MasterCard and Visa for payment systems, in order to ensure that chip cards function with chip terminals.

Cryptography is the art or science of keeping messages secret and/or secure using a mathematical algorithm with the purpose of encrypting data. Chip cards can use cryptography to keep card information secret.

The Interac Online service is a payment option that you can offer to your customers to enable them to pay for goods and services online and directly from their bank accounts.

The Interac Online service is a payment option that allows consumers to pay for goods and services online and directly from their bank account.

When a consumer is ready to checkout and they've selected the Interac Online payment option, your online merchant page will redirect them to an Interac Online gateway page (passing basic information such as the amount and an invoice number) that lets them choose their financial institution. Once the transaction is approved in online banking, they will be redirected back to your website with a unique transaction code. That code is then sent to your acquirer or payment service provider, who will check its validity and let you know if the transaction was successfully funded.

Interac Online works by leveraging existing processes and relationships:

• The consumer's existing relationship with their financial institution.
• The merchant's existing relationship with their acquirer or payment processor.
• The same network that carries Interac Direct Payment transactions.
• The existing settlement processes that are used for Interac Direct Payment transactions

To view the Interac Online experience from a consumer perspective click here

Yes, the Interac Online service is secure for the following reasons:

• No sensitive information is shared between the online merchant and the consumer's financial institution
• The Interac Online service leverages existing merchant-acquirer processes and communication networks
• The payment is completed through the financial institution's systems and over the same secure network used for Interac Direct Payment

In addition, consumers feel safe using Interac Online for the following reasons:

• The consumer does not provide any financial details, card numbers or login information to the online merchant
• The consumer uses his or her existing online banking service with his or her usual User ID and password

Attracts new markets: Interac Online opens up a world of online shopping for consumers who:

• Are unable or unwilling to obtain credit cards
• Don't want to share financial information (such as card numbers) with merchants.
• Prefer to use debit over credit.

Increases sales: Giving consumers an additional payment option may lead to higher conversion rates at checkout.

Decreases costs in several ways:

• No chargebacks: As long as you honour your commitments, you won't get any chargebacks.
• No authentication costs: The financial institution authenticates the consumer and is responsible for consumer-side fraud. That means you don't have to spend time and money ensuring your consumers are who they say they are.
• Competitive merchant fees: Fees may be lower than competing payment options; check with your provider for specific rates.

Easy to implement: Whether you use a packaged solution or have your own software, a participating acquirer or payment service provider can help you get set up to process Interac Online transactions.

Good Funds model: The financial institution authenticates the consumer and withdraws funds from the consumer's account in real time. You know instantly that the funds are good, so you can fulfill the order right away, with confidence.

Reduced risk: The consumer doesn't share sensitive financial information such as card numbers or passwords with you. That means less data in your computer systems for you to protect against intruders.

Interac Online offers consumers:

• Privacy: None of their financial details, card numbers or login information is shared with the online merchant or a third party.
• Ease of use: Because the payment is conducted through their existing online banking, they don't need to sign up or create any new passwords or accounts.
• Security: Payment is completed through their financial institution.
• Spending Control: The Interac Online service helps them better manage their finances. They pay immediately using available funds from their bank account, unlike credit where they owe later.

Any consumer who uses online banking at any of these financial institutions can use the Interac Online service. That represents about 8 million Canadians today, and that number is rapidly increasing.

Yes, hundreds of merchants. Click here for the current list of participating merchants, with more being added frequently.

A consumer must be registered for online banking to use the Interac Online service. If the consumer tries to use the Interac Online payment option but does not have access to online banking, the financial institution may give him or her the option to register for web banking right away. The consumer will always be provided a link back to your website, so if they decide not to register for online banking, you can let him or her checkout using another payment method.

The Interac Online service is only offered through certified acquirers and payment service providers. Your current provider may already offer the service.
Your first step is to contact one of these providers to ask them about their offerings, fees, and implementation steps.
List of certified acquirers
List of certified payment service providers

Fees to online merchants are set by the acquirer or payment service provider. Fees to consumers, if any, depend on their financial institution and service plan.

One of the main benefits of the Interac Online service is the separation of shopping and paying. The consumer is taken to his or her financial institution to make the payment so that he or she does not have to enter any account information on your website. Many studies show that consumers are concerned about sharing financial or account details with online merchants.

In the Interac Online payment flow, the consumer's web browser is automatically directed back to your website once the payment is made. In the event that the consumer is unable to or decides not to authorize the payment in online banking, they are still returned to your website, allowing you to continue the checkout process using a different payment method.

Some acquirers and payment service providers support Interac Online refund transactions. These allow you to initiate a credit which the customer will receive in the same bank account used for the original purchase. Alternately, you can provide refunds using other mechanisms (e.g. providing a store credit, or sending a cheque).

The Interac Online service was specifically designed to allow customers to pay for goods and services from an online merchant. The transaction begins and ends at the merchant's website, and the process is very simple for a consumer. Furthermore, consumers are protected by our Customer Commitment.

Interac Email Money Transfer, on the other hand, is an online person-to-person funds transfer service, designed to send money between people who know and trust each other. While consumers can use it to send money to merchants, such a transaction is less convenient (since the consumer needs to enter the merchant and transaction information manually), and (like sending cash or a cheque) does not provide inherent protection against a fraudulent merchant.

In the credit card world, an authorized transaction can be reversed. This may happen, for example, when a fraudulent transaction has been charged against a customer's account, and the customer disputes the transaction. To avoid chargebacks, many merchants perform checks before accepting a transaction and refuse to accept it if suspicious. Sometimes blocked transactions are actually legitimate, and so this practice has the negative effect of preventing valid customers from completing their purchase. This type of chargeback does not occur with Interac Online. The financial institution authorizes each payment, and guarantees payment to the merchant.

Contact your acquirer or payment service provider for more information on the Interac Online service. If you don't currently have a provider, or your current provider does not offer the Interac Online service, contact any of the certified acquirers or payment service providers.